Founder of Defunct Bitcoin Exchange Under Siege: Lawsuits galore

Trouble now seems to be part of life for the founder of a now-defunct BTC exchange. John Montroll, 37, is fighting a trail of lawsuits, not mentioning a lawyer after his neck for non-payment.

This has happened in the wake of federal securities fraud lawsuits initiated by the SEC last month. Through a civil complaint filed by the SEC on February 21st, he is accused of managing his cryptocurrency site, BitFunder, unlawfully as an unregistered securities exchange, defrauding its users.

Charge after Charge

On top of these, Montroll also faces other charges by the US Attorney for the Southern district of New York for obstruction of justice and perjury. According to the prosecutor, Montroll not only presented fake documents but also gave false testimony at the time when the SEC was conducting an investigation into BitFunder.

There have been reports that there was a cyber attack against Montroll’s exchange system that led to a massive Bitcoin theft and the SEC was on a mission to try and establish the truth in this matter. In his bid to conceal the losses that resulted from this attack, Montroll is believed to have transferred part of his personal Bitcoin holdings.

Man With a History of Lawsuits

As such, the cases are now pending and Montroll is expected to make an appearance in Manhattan Federal Court on Wednesday regarding the DOJ case. However, a look at Montroll’s history reveals even more regarding his legal tussles. He is believed to have been arrested back in 1998 for theft of electronics in Arrington Texas. However, police were not in a position to divulge how this earlier case ended, citing lack of proper records.

Montroll Also Linked to Tax Evasion

Montroll’s woes don’t end there though. He is also linked to a case of unpaid taxes for a family property, for an amount that runs into the thousands of dollars. Despite efforts to get more information on the current charges however, Michael Lehmann, a federal public defender who represents Montroll in court for the SEC case, was not willing to offer any detailed information.

From the looks of things, the Montroll legal tussle will not end anytime soon. More seems to be coming up even as he struggles to shrug off old cases and accusations.

What do you think about John Montroll’s seemingly endless crypto lawsuits? Let us know your thoughts in the comments section below.